The recent announcement by U.S. president Donald Trump to impose additional tariffs on Chinese imports has escalated the US-China trade war and in turn affected the Malaysian palm oil prices – that fell more than 1% on 10 May, 2019.
The benchmark palm oil contract for July delivery stood at 2,005 ringgit ($482.90) a tonne at the close of trade - a down 1.6 percent at the Bursa Malaysia Derivatives Exchange. This is the sharpest fall in prices in a week.
The week also witnessed a hit on global stocks and commodities markets after the new tariffs announcement.
Malaysia's production in April was predicted to fall to 1.64 million tonnes, down 1.9 percent from March, according to a Reuters poll. In addition, stocks were anticipated to decline 5 percent to 2.77 million ringgit.
Meanwhile, Dalian Commodity Exchange reported a 0.7 percent for Chicago July soybean oil contract and flat trading for May soyoil contract. The Dalian May palm oil contract slipped 0.3 percent.
Since palm oil and soyoil compete in the global market, palm oil prices are affected by the movements in soyoil.
For more on palm oil prices – a key oleochemical feedstock, attend CMT’s 7th Oleochemicals Outlook on 25-26 September, 2019 in Singapore.
Email Ms. Grace at email@example.com
or call +65 6346 9147 for more information on this conference.